If you were playing a game of deal or no deal and there was 20 suitcases left. Highest being $400,000 and lowest being $5 the range would be $399,995. So what would these calculations measure?
State what each of the fifteen items you calculated in #2 measure. Your answer to each of these fifteen parts is one of the following: (a) average payoff; (b) risk; or (c) what a person would give up to get away from risk.
1) (bank’s offer – lowest) / range
2) (average – lowest) / range
3) [(bank’s offer – lowest) / range] / [(average – lowest) / range]